Govt Considers Major Changes in Used Car Import Policy
Islamabad: The government is reviewing a proposal to merge the personal baggage and gift schemes for overseas Pakistanis with the upcoming five-year commercial import policy for used cars, which is expected to take effect from October 1, 2025.
Higher Duties on Older Cars
During a briefing to the National Assembly Standing Committee on Commerce, Secretary Commerce Jawad Paul said that five-year-old imported cars will initially face an additional 40% duty, which will gradually be reduced by 10% each year. He added that while the baggage and gift schemes may be merged, the transfer of residence scheme will remain separate.
Concerns Over Foreign Exchange Impact
Committee members Usama Ahmed Mela and Gul Asghar Khan asked for a detailed briefing on the imports of used and electric vehicles, stressing their potential effect on the country’s foreign exchange reserves.
Importers Seek Relaxation
A delegation of used car importers, led by Hassan Danji, recommended:
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Removing the Engineering Development Board (EDB) from the process, since imports fall under the Ministry of Commerce.
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Reducing the 40% duty on five-year-old cars.
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Forming a joint working group of officials and importers to design a business-friendly policy.
Final Decision Still Pending
Secretary Commerce clarified that many auto sector matters fall under the Ministry of Industries, and his ministry is already handling heavy responsibilities.
Standing Committee Chairman Jawed Hanif Khan decided to forward the matter, along with recommendations, to the Standing Committee on Industries and Production for further review.
